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UBS's Mortgage Woes Increase

Swiss Bank Adds $4 Billion to Losses
Seen in '07, Takes Third Write-Down;
The Optimism From October Is Gone

By

Carrick Mollenkamp and

Katharina Bart

Updated Jan. 31, 2008 12:01 a.m. ET

In an early sign that banks' mortgage woes are spreading to new types of investments, UBS AG warned that its 2007 losses will be $4 billion more than it thought just a month ago.

The Swiss banking giant took its third write-down in four months, bringing its total to an estimated $18.4 billion for 2007. The company didn't detail the reasons, but one analyst said the move was in part because of losses on securities other than those tied to subprime home mortgages. UBS also expects to report its first loss in the firm's 10-year...